When Inclusive Business Meets the Kinship System: Institutional Work as a Coping Strategy

Abstract

Despite increased interest in inclusive business, where firms engage the poor in the value chain, research that examines the reality of inclusive business from the perspective of the firm is lacking. An aspect of this reality is the tension between informal institutions and inclusive business. Building on empirical data from case study firms in the Pacific island country of Vanuatu, we present the on-the-ground reality of tensions between an informal institution common in poor communities, the kinship system, and inclusive business. The findings show how the tensions between the kinship system and inclusive business manifest as challenges for the firms engaged with the poor. We show how firms engage in institutional work as a way of coping with the challenges. The study contributes to understanding how informal institutions can undermine inclusive business. The findings suggest that managers engage in institutional work to overcome the challenges, steering us to connect the inclusive business and institutional work literature. Connecting these literature is important as it frames inclusive business as more than simply an attempt at improving livelihoods and providing access to goods and services to the poor, it encourages us to consider the implications of inclusive business for local social systems.